EUR/JPY Price Forecast: Tests nine-day EMA support near channel's lower boundary at 161.50

• The EUR/JPY cross may face initial resistance around the psychological level of 165.00.
• The 14-day Relative Strength Index (RSI) remains above 50, strengthening the bullish outlook.
• Immediate support is seen at the nine-day EMA of 161.79, followed by the ascending channel's lower boundary at 161.50.

EUR/JPY dips slightly after gaining in the previous session, hovering around 161.90 during Thursday's Asian trading hours. Technical analysis of the daily chart indicates the currency cross is moving within an ascending channel, supporting a bullish outlook.

Additionally, the 14-day Relative Strength Index (RSI) remains above 50, reinforcing the bullish bias. The cross also stays above the nine-day Exponential Moving Average (EMA), signaling strong short-term momentum and the potential for further gains.

On the upside, the EUR/JPY cross could encounter initial resistance near the "pullback resistance" around the psychological level of 165.00. Beyond this, the next key hurdle lies at 166.69--an eight-month high last reached in October 2024--aligning with the upper boundary of the ascending channel.

The EUR/JPY cross may find initial support at the nine-day EMA of 161.79, followed by the ascending channel's lower boundary at 161.50. A break below this critical support zone could weaken short-term momentum, potentially driving the cross toward the 50-day EMA at 160.49.

Further decline below the 50-day EMA could erode medium-term momentum, intensifying bearish pressure and dragging the cross toward its monthly low of 155.59, recorded on March 4, followed by 154.41, its lowest level since December 2023.

EUR/JPY: Daily Chart